The Victorian Government has signed up to the Inter-Governmental Agreement for the Murray Darling Basin Plan’s implementation and an associated funding agreement.

State Minister for Peter Walsh said that the agreement struck between the State and Commonwealth Governments will settle the responsibilities of implementing the Basin Plan.

“While consensus on the agreements has taken some months to achieve, it was very important for Victoria that all of our key concerns were addressed.

“The IGA and the funding agreement were the next important steps for an agreed approach to securing the health of the Murray Darling Basin in a way which also ensures a future for Basin communities.

“Victoria has always maintained that a healthy Basin can be achieved alongside sustainable, productive and modern irrigation, and we are committed to supporting regional communities and the industries they rely on for their livelihoods,” Mr Walsh said.

The IGA and funding agreement provide Victoria with:

  • $14.3 million over three years to develop offset projects to reduce the volume of water required to be recovered from productive use under the Basin Plan;
  • $47.4 million over eight years for costs associated with implementing the Basin Plan; and
  • a commitment from the Commonwealth that it will consult with states on the details of its $100 million Murray-Darling Basin Regional Economic Diversification Program, to provide assistance to communities affected by the Basin Plan.

The IGA also outlines agreed arrangements for:

  • operation of the sustainable diversion limit (SDL) adjustment mechanism, which recognises the beneficial impact works and measures can have in river and floodplain health. The SDL adjustment mechanism can potentially reduce the amount of water needed to be taken out of productive use by up to 650 GL;
  • co-operative management of water for the environment, including the involvement of local communities; and
  • a clear transition process for Basin Plan implementation, including a commitment by the Commonwealth that its responsibility to ‘bridge the gap’ will not be passed to states.